BREAKING: The Clarity Act CANCELLED - Here's What it Means For Bitcoins Rally | EP 1585

Nico Moran (0:00)

Coming out of the White House this morning, surrounding the Clarity Act, the House just decided to take the last two weeks of September off, which rug pulls the final Clarity Act vote that was supposed to happen on September 15th. That might sound negative for Bitcoin, but Trump took to truth social, once again demanding interest rate cuts, which could be rocket fuel for Bitcoin. Which catalyst matters more for the Bitcoin price, the Clarity Act or a new wave of easy money?

We have a lot to cover today. Let's start with this clip with Tom Emmer that summarizes the sentiment surrounding the Clarity Act delay. Let's check it out.

SPEAKER_2 (0:42)

What's the Republican agenda? You've got to separate out the House and the Senate. The House has done its work, Becky. We not only passed the CR, the only reason the Senate by the way gave us a CR, a continuing resolution, is because we passed one before we left in July.

Otherwise, we wouldn't have that right now. So the House has done its work. We've sent the Clarity Bill over there, which is a digital assets market structure bill. We sent it over more than a year ago, Becky, with almost 100 Democrat votes, and it sits over in the Senate, languishes, Reconciliation 3 was passed and is sent over there. The NDAA, the National Defense Authorization Act, was sent. It sits over there. So the House has done its work. Our members have a lot to run on.

Jethro Toro (1:27)

What's wrong with the Senate?

SPEAKER_2 (1:30)

You're going to have to ask the Senate. The House has passed close to 800 pieces of legislation.

Over 500, maybe close to 600, still sit in the Senate without action. I just gave you three of the biggest ones. I mean, the Senate's got to pass a farm bill. The House has done that. The Senate's got to get the work done. They're coming back in just over a week, and I'm hopeful that they're going to move a bunch of this stuff.

Nico Moran (1:57)

So I'm going to give you my personal opinions on this. But before we get to it, I do want to read this post from Alex Thorne. Alex Thorne has done incredible work covering the Clarity Act, and he says it himself. The House September session only one week away, only one week, House Republican leadership has canceled votes for the weeks of September 21st and September 28th. The House will return September 14th for four days, then leave Washington until after the midterms. This makes it extremely unlikely Clarity can pass before midterms. Note that the Senate has approximately three weeks of session from 915 until first week of October. But even if Clarity passes the Senate, the House would also need to pass the Senate's version to send the bill to the President. So, I mean, you guys have heard my opinion on this all year long. It seems like they're dragging their feet on this. It seems like the entrenched interests in Washington don't want this bill to pass. And I would even say some Republicans as well. I wouldn't even put all of the blame on the Democrats. And the entrenched interests are simple. Do you remember how fast the Genius Act passed, which was the stable coin bill?

It passed extremely quickly and it had Democrat votes. Why? Because essentially the stable coin bill, what it does is it propagates the US dollar worldwide. And what does that mean? That means that the government can print more money as much as they want to. And the Clarity Act doesn't really do that. The Clarity Act is mostly bullish for, to use Larry Fink's own words, a non-sovereign alternative. And I think a lot of the motivation comes from that, in my opinion. Like if you guys remember Senator Lummis' wording, she said that the Clarity Act has been the most difficult bill that she has ever tried to get across the finish line in her entire political career. That tells you everything you need to know. And I always talk about incentives, right? And that no one's better than their incentives. And ultimately, if Congress benefits from the dollar system, the money printer, why would they want that to change? And I think a lot of the motivation comes from that. And it's very revealing. And this leads me to my next point, where President Trump went on Truth Social on September 4th, so earlier this morning. And he says, great job numbers just announced, breaking all estimates by double and triple. You haven't seen anything yet. Employers added 162,000 jobs in August, lower the interest rates because the USA is a much stronger credit than it was just a short time ago. A strong country means a lower interest rate. It's a better credit. Very simple. We should have the lowest rates of any country in the world, like the old days, without the United States agreeing to allow them their big surpluses. And we could stop that immediately. They would no longer be considered financially elite. Lower the rate or I'll stop trading with countries with which we have a deficit, which the US. Supreme Court and its ridiculous and very costly tariff decision strongly acknowledge the president has an absolute right to do. It's better than tariffs. The Fed Board, with its great new leader, must get smart. Be patriots for a change. Higher interest rates put the USA at a very unfair disadvantage. And I won't allow that to happen. President Donald J. Trump. Now, I think this goes into a bigger discussion. And that bigger discussion is what I've talked about previously on the show, which is the Federal Reserve really doesn't have any democratic accountability, which is absolutely bonkers. The Federal Reserve is the most powerful economic institution on planet Earth. And it doesn't have democratic accountability. Not even to the President of the United States. So it doesn't matter if you vote for Team Blue or Team Red, the Fed remains the same. And I know the counter argument to this is yes, but you know, Congress could change the Federal Reserve Board and all that stuff. But as the Clarity Act, why would they be incentivized to do so if Congress benefits tremendously from the Federal Reserve System itself? Like no one's better than their incentives at the end of the day. So going back to the Congress point, right? And this is something that people were fact checking me on last time I talked about this, and I said, look, the Federal Reserve really doesn't have any Democratic accountability. So the strongest Democratic check on the Federal Reserve is that Congress can amend or repeal the Federal Reserve Act at any time. But once again, they're not going to be incentivized to do that. The Federal Reserve Act is what allows Congress to spend beyond their means and enables them. If the legislative branch decides the Fed is abusing its power or failing the public, it has the constitutional authority to strip the Fed of its independence, change its mandate, or completely restructure how monetary policy is managed in the United States.